PARIS: Euro Disney S.C.A., parent company of Euro Disney Associes S.C.A., operator of Disneyland(R) Paris, today reported the results for its consolidated group for the first six months of fiscal year 2010 which ended March 31.

Commenting on the results, Philippe Gas, Chief Executive Officer of Euro Disney S.A.S, said:

"The continued challenging economic context is reflected in our First Half revenues and net results, primarily due to lower attendance and occupancy at the Resort. For the same period last year, revenues had not been fully impacted by the economic decline, partly because of the way guests book their vacations in advance of visits. However, our focus on sales and marketing initiatives has helped improve guest spending.

We recently launched the Disney New Generation Festival, a year-long celebration featuring the newest characters from the Disney universe, and later this summer we will open three new attractions within Toy Story Playland at the Walt Disney Studios. We are excited to share these updates to our Resort experience with our Guests.

The dedication and quality Guest service provided by our Cast Members are essential to the long-term success of our company. The entire management team remains strongly committed to their well-being, particularly during this difficult economic and social environment."

Seasonality: The Group's business is subject to the effects of seasonality and the annual results are significantly dependent on the second half of the year, which traditionally includes the high season at Disneyland(R) Paris. Consequently, the operating results for the First Half are not necessarily indicative of results to be expected for the full fiscal year.

Resort operating segment revenues decreased by 7% to EUR 517.5 million from EUR 553.9 million in the prior-year period.

Theme parks revenues declined by 7% to EUR 287.3 million from EUR 309.6 million in the prior-year period due to an 8% decrease in attendance to 6.5 million, partly offset by a 1% increase in average spending per guest to EUR 43.51. The decrease in attendance was primarily due to fewer guests visiting from the United Kingdom and Netherlands.

Hotels and Disney(R) Village revenues decreased by 7% to EUR 205.3 million from EUR 219.6 million in the prior-year period, due to a 6.2 percentage points decrease in hotel occupancy to 79.6%, partly offset by a 1% increase in average spending per room to EUR 189.67. The reduction in hotel occupancy resulted from 65,000 fewer room nights compared to the prior-year period, primarily due to fewer guests visiting from the United Kingdom and lower business group activity, partly offset by more French guests staying overnight. The increase in average spending per room reflected an increase in daily room rates.

(1) Direct operating costs primarily include wages and benefits for employees in operational roles, depreciation and amortization related to operations, cost of sales, royalties and management fees. For the First Half and the corresponding prior-year period, royalties and management fees were EUR 30.1 million and EUR 32.3 million, respectively.

Direct operating costs decreased EUR 5.6 million compared to the prior-year period, primarily due to reduced costs associated with lower business activity and reduced taxes. This decrease was partially offset by labor rate inflation.

Marketing and sales expenses decreased EUR 2.1 million compared to the prior-year period, as a result of the timing of sales and marketing initiatives versus the prior-year period.

General and administrative expenses increased EUR 2.8 million compared to the prior-year period, driven by depreciation related to new system developments and labor rate inflation.

Financial income decreased EUR 5.5 million due to lower average short term interest rates.

Financial expense decreased EUR 11.1 million due to lower interest rates and lower average borrowings.

Net Loss: For the First Half, the net loss of the Group amounted to EUR 114.5 million compared to EUR 85.4 million for the prior-year period. Net loss attributable to equity holders of the parent amounted to EUR 95.2 million and net loss attributable to minority interests amounted to EUR 19.3 million. The increase in net loss of the Group was driven by the decreased revenues compared to the prior-year period.

Cash flows: Cash and cash equivalents as of March 31, 2010 were EUR 283.5 million, down EUR 56.8 millionSeptember 30, 2009. This decrease resulted from: compared with

                                                         First Half  Variance
    (EUR in millions, unaudited)                       2010    2009
    Cash flow generated by / (used in)
     operating activities                              27.8    (23.2)  51.0
    Cash flow used in investing activities            (39.6)   (28.1) (11.5)
    Free cash flow used                               (11.8)   (51.3)  39.5
    Cash flow used in financing activities            (45.0)   (43.0)  (2.0)
    Change in cash and cash equivalents               (56.8)   (94.3)  37.5

    Cash and cash equivalents, beginning of period    340.3    374.3  (34.0)
    Cash and cash equivalents, end of period          283.5    280.0    3.5

Free cash flow used for the First Half was EUR 11.8 million compared to EUR 51.3 million used in the prior-year period.

Cash flow generated by operating activities for the First Half totaled EUR 27.8 million compared to EUR 23.2 million used in the prior-year period. This improvement resulted from lower working capital requirements, driven by the conditional deferral into long term debt of EUR 45.2 million of royalties and interest related to the Group's fiscal year 2009 performance. These amounts were paid in the prior-year period. This positive cash impact was partly offset by a decline in operating margin.

Cash flow used in investing activities for the First Half totaled EUR 39.6 million compared to EUR 28.1 million used in the prior-year period. This increase reflects the development of Toy Story Playland, scheduled to open in the summer.

Cash flow used in financing activities corresponds to the repayment of the debt and totaled EUR 45.0 million for the First Half compared to EUR 43.0 million used in the prior-year period.

The Group has covenants under its debt agreements which limit its investments and financing activities. The Group must also meet financial performance covenants which require improvements to its operating margin.

For fiscal year 2010, if compliance with these financial performance covenants cannot be achieved, the Group will have to appropriately reduce operating costs, curtail a portion of planned capital expenditures and/or seek assistance from The Walt Disney Company ("TWDC") or other parties as permitted under the debt agreements. Although no assurances can be given, management believes the Group has adequate cash and liquidity for the foreseeable future based on existing cash positions, liquidity from the EUR 100.0 million line of credit available from TWDC, and the provisions for the conditional deferral of certain royalties and management fees and interest.